SEC

It was the best of times, it was the worst of times. For investment advisers and others subject to the pay-to-play rules, that is. Although both vice presidential picks have gubernatorial experience, because Mike Pence is a sitting governor and Tim Kaine is a former governor, there are certain pay-to-play rules that apply to contributions to Trump/Pence that do not apply to Clinton/Kaine. Thus, the Pence pick has important implications for many companies and firms engaged in the financial services industry.

As reported by various newsoutlets, Governor Pence’s role with the Indiana Public Retirement System subjects contributions to the Trump/Pence ticket to the SEC’s and other pay-to-play rules. Violations of these rules can carry significant penalties. And the shadow of the pay-to-play fundraising restrictions has even caused some to speculate that Pence should resign as governor.

Last week, the U.S. Government Accountability Office (GAO) released its long-awaited report on the gathering and use of so-called “political intelligence.” While the report targets the role of political intelligence in the financial markets, it may fuel attempts to regulate this growing Washington industry by using federal lobbying laws as a model. The report also …

PepsiCo has agreed to more robust disclosure of its lobbying and political spending in response to a shareholder resolution filed on behalf of New York’s state pension fund, which owns about $400 million in PepsiCo stock. Just three weeks ago, the New York State Comptroller settled a suit with Qualcomm over similar issues.

Last week Qualcomm and New York State’s Comptroller, Thomas DiNapoli, announced that Qualcomm will begin posting its political spending on its website. In exchange, the NY Comptroller has agreed to drop the lawsuit it filed against the company.

As described here, last month the NY Comptroller sued Qualcomm on behalf of the state’s pension…

Prominent Wall Street firm Goldman Sachs will pay almost $12 million to settle charges that one of its investment bankers made undisclosed campaign contributions to a state official responsible for awarding government contracts.

The case is the first SEC action for pay-to-play violations based on “in-kind” – meaning, non-cash – contributions to a political campaign.…

Last week the Securities and Exchange Commission issued a Final Rule extending the date by which investment advisers are required to comply with the ban on the use of third-party marketers under Rule 206(4)-5 (the Federal Pay-to-Play Rule”). This ban had been set to go into effect this Wednesday, June 13.